The MACRS depreciation tables automatically switch to the straight-line method when the straight-line method yields a higher annual depreciation amount than the declining balance method.

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The MACRS depreciation tables automatically switch to the straight-line method when the straight-line method yields a higher annual depreciation amount than the declining balance method. This is because the MACRS tables are designed to maximize the amount of depreciation that can be taken in the early years of an asset's life. Once the straight-line method yields a higher annual depreciation amount, it is more beneficial to switch to that method in order to maximize the total amount of depreciation that can be taken over the asset's life.

The MACRS Depreciation Tables Automatically Switch to the Straight-Line Method